The oscilator rapidly discovers the end of the price trend and the beginning of the price movement in a horizontal interval and reverse. The Aroon Oscillator is calculated as a difference between the Aroon Up and the Aroon Down. The strongly rising trend is expected when the value of the Aroon Oscillator is between 40 and 100. The intense descending trend can be expected when the Aroon Oscillator keeps its values between -40 and -100.
A simple and clear decision making while working with the Aroon Oscillator is: buy when the oscillator moves from the negative region to the positive one, sell in the opposite situation.